Modern Dental Group Limited (3600) AI Stock Analysis

• Market Cap: HK$4.04B
• Dividend Yield: 4.27%
• Average Volume (3M): 500.80K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.39
• Revenue Growth: 6.05%
• EPS Growth: 1.32%
• Country: HK
• Employees: 7,106
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.43
• Shares Outstanding: 938,950,000
• 10 Day Avg. Volume: 398,597
• 30 Day Avg. Volume: 500,799
• PEG Ratio: 4.08
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$4.50 ▲(4.17%Upside)

Modern Dental Group demonstrates a strong financial foundation and appealing valuation, offset by technical indicators that suggest a neutral market sentiment. The absence of recent cash flow data is a notable risk that needs addressing to ensure continued financial health.

Modern Dental Group Limited Business Overview & Revenue Model

Company Description

Modern Dental Group Limited (3600) is a leading global dental prosthetic device provider headquartered in Hong Kong. The company operates in the healthcare and dental sectors, focusing on the design, manufacture, and distribution of high-quality dental prostheses, including crowns, bridges, dentures, and implants. Modern Dental Group serves a diverse clientele, including dental practices and laboratories across various international markets.

How the Company Makes Money

Modern Dental Group Limited generates revenue primarily through the sale of dental prosthetic products to dental laboratories and practitioners. The company operates an extensive distribution network across multiple countries, leveraging its strong market presence and industry expertise to cater to the growing demand for dental solutions. Key revenue streams include the design and production of customized dental prosthetics, as well as the provision of related services such as technical support and training for dental professionals. Strategic partnerships with dental clinics and continuous innovation in product offerings further enhance its market penetration and contribute to its earnings.

Modern Dental Group Limited Financial Statement Overview

Summary

Modern Dental Group Limited has demonstrated strong financial performance with robust revenue growth and profitability. The income statement shows a consistent increase in revenue, a solid gross profit margin, and strong EBIT and EBITDA margins. The balance sheet is stable with moderate leverage and robust ROE. However, the cash flow analysis reveals concerns, with zero operating and free cash flow in the latest period, posing a potential risk that needs to be addressed for ongoing financial health.

Income Statement

Modern Dental Group has demonstrated a strong income statement performance with a consistent increase in total revenue over recent years. The company reported a gross profit margin of approximately 53.5% for the most recent period, and the net profit margin stands at around 12.1%. Both EBIT and EBITDA margins are solid at 15.9% and 19.8%, respectively. The revenue growth rate from 2023 to 2024 was about 6.06%, indicating a positive growth trajectory. Overall, the income statement reflects strong profitability and growth, though there is room for improvement in EBIT consistency.

Balance Sheet

The balance sheet of Modern Dental Group shows a stable financial position with a debt-to-equity ratio of approximately 0.34, indicating moderate leverage. The return on equity (ROE) for the latest period is about 15.0%, which is robust and demonstrates effective management of equity. The equity ratio is a strong 66.7%, highlighting a solid equity base relative to assets. While the company's leverage is under control, continuous monitoring is advised to maintain this stability.

Cash Flow

The cash flow analysis for Modern Dental Group reveals some challenges, particularly with the reporting of operating cash flow and free cash flow being zero for the most recent period. Historically, the company has shown positive free cash flow growth, and the operating cash flow to net income ratio was healthy in previous years. However, the lack of cash flow data for the latest period raises concerns about cash management, which needs addressing to ensure liquidity and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.36B	3.17B	2.83B	2.96B	2.19B
Gross Profit	1.80B	1.70B	1.38B	1.55B	1.09B
EBITDA	719.12M	696.64M	464.09M	627.01M	295.21M
Net Income	408.00M	404.10M	220.46M	360.82M	107.76M
Balance Sheet
Total Assets	4.07B	3.95B	3.54B	3.66B	3.67B
Cash, Cash Equivalents and Short-Term Investments	816.83M	697.69M	447.72M	638.00M	702.65M
Total Debt	924.22M	852.20M	788.19M	833.09M	1.03B
Total Liabilities	1.35B	1.31B	1.21B	1.30B	1.41B
Stockholders Equity	2.72B	2.63B	2.32B	2.35B	2.25B
Cash Flow
Free Cash Flow	367.69M	416.04M	53.36M	369.27M	303.87M
Operating Cash Flow	521.19M	575.76M	238.72M	510.72M	376.32M
Investing Cash Flow	-145.47M	-154.96M	-227.55M	-140.83M	-47.32M
Financing Cash Flow	-227.70M	-173.64M	-184.09M	-439.50M	-32.95M

Modern Dental Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3600, the sentiment is Positive. The current price of 4.32 is above the 20-day moving average (MA) of 4.21, above the 50-day MA of 4.10, and above the 200-day MA of 3.90, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 66.12 is Neutral, neither overbought nor oversold. The STOCH value of 93.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3600.

Modern Dental Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9997	83 Outperform	€9.53B	15.05	18.36%	21.75%	7.13%	13.39%
1358	76 Outperform	€2.01B	12.37	3.72%	4.24%	11.84%	-2.22%
3600	74 Outperform	HK$4.04B	9.98	15.04%	4.27%	6.05%	1.32%
2276	68 Neutral	HK$17.83B	33.35	28.81%	0.95%	14.99%	31.70%
1501	67 Neutral	HK$4.40B	19.76	11.24%	1.20%	11.23%	20.39%
6699	65 Neutral	HK$9.84B	203.75	1.33%	0.66%	―	―
Sector *	60 Neutral	HK$15.58B	5.65	-7.43%	4.32%	11.60%	-21.06%

Modern Dental Group Limited Corporate Events

Modern Dental Group Sees Revenue Growth Amid Strategic Expansion

Modern Dental Group Limited reported a 5.3% increase in revenue for the first quarter of 2025, driven by strategic acquisitions and digital transformation efforts. Despite challenges in certain markets, the company has successfully leveraged global digitalization trends to enhance its competitiveness and market share, particularly through the acquisition of Hexa Ceram and a focus on mid- to high-value customers.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$6.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group’s AGM Approves Key Resolutions

Modern Dental Group Limited held its annual general meeting on May 29, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of Ernst & Young as auditors. The meeting also granted the board general mandates to buy back shares and issue additional shares, reflecting shareholder confidence in the company’s strategic direction.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$6.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group Strengthens Governance with New Appointment

Modern Dental Group Limited has announced the appointment of Ms. Chan Yik Yu as a member of its nomination committee, effective from May 29, 2025. This strategic appointment is expected to enhance the company’s governance structure, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$6.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group Limited Announces Board Composition

Modern Dental Group Limited has announced the composition of its board of directors and the roles and functions of each member. This announcement highlights the company’s commitment to strong corporate governance and strategic leadership, which may impact its operational efficiency and market positioning positively.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$6.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group Updates Nomination Committee Terms

Modern Dental Group Limited has updated the terms of reference for its Nomination Committee, initially adopted in 2015 and previously updated in 2018. The committee is tasked with ensuring a fair and transparent process for board appointments, identifying suitable candidates, and making recommendations to the board and shareholders. This update underscores the company’s commitment to robust governance practices, potentially enhancing its industry positioning and stakeholder trust.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$6.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group Limited Announces Annual General Meeting with Key Resolutions

Modern Dental Group Limited has announced its upcoming annual general meeting scheduled for May 29, 2025, where key resolutions will be discussed. These include the approval of financial statements, declaration of a final dividend, re-election of directors, re-appointment of auditors, and granting mandates for share buybacks and issuance. These resolutions, if passed, will allow the company to manage its capital structure effectively and ensure continued governance and operational efficiency.